Attention Business/Financial Editors: Repap Enterprises Inc. Reports Improved First Quarter 2000 Results Driven by Record Coated Paper Production and Shipments
STAMFORD, CT, April 27 /CNW-PRN/- Repap Enterprises Inc. announced today
its results of operations for the first quarter ended March 31, 2000. Record
production (1,403 tons/day) and shipments (127,000 tons) of coated paper as
well as improving prices for coated paper and pulp resulted in increased
revenues and EBITDA for the first quarter of 2000.
Revenues were $175.3 million, up 8% or $12.6 million from revenues in the
first quarter of 1999. The increase in revenues is attributable to improved
coated paper markets with shipments increasing 10,000 tons or 9% over the
first quarter of 1999 and coated paper revenues increasing by $10.7 million or
7.5% to $153.3 million over the same period last year.
Repap reported a loss of $12.5 million ($0.02 per share) during the first
quarter of 2000 compared to a loss of $9.3 million ($0.01 per share) in the
corresponding quarter of 1999, and a loss of $10.1 million in the fourth
quarter of 1999. However, the first quarter of 2000 included the amortization
of non-cash currency hedging losses incurred in 1992 of $9.4 million compared
to $1.2 million in the first quarter of 1999 and $1.7 million in the fourth
quarter.
Repap recorded EBITDA(1) of $42.6 million for the first quarter of 2000,
up 9% or $3.6 million from first quarter 1999 EBITDA of $39.0 million and up
17% or $6.2 million from fourth quarter 1999 EBITDA of $36.4 million. The
improvement over last year's first quarter is due to increased shipments of
coated paper reflecting the impact of our record quarterly production and
solid market conditions, while the improvement over the fourth quarter
reflects mainly the impact of lower costs and improved pricing in all major
product lines.
Commenting on the results, Mr. Stephen Larson, President and Chief
Executive Officer, said, ``I'm optimistic about the Company's prospects for
the balance of the year. Recent price increases implemented in Q2 for both LWC
and pulp, coupled with continuation of the record-setting productivity
achievements at the New Brunswick mill, will result in a continued improvement
in EBITDA over our current run rate.''
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